- 21 Mar 2009 08:51
#1842189
Einstein's Law of Political Relativity - All ideological reference frames are relative.
I'm not sure just how far up the income tax brackets should go, but I do agree that $350k is too low for the top bracket to begin. We should distinguish the merely-rich from the super-rich in our tax rates.
http://www.taxfoundation.org/files/fede ... 901021.pdf
This gives a year-by-year history of the income tax brackets. Notice that in the 1960s and '70s the 70-percent bracket started at $200k. In the early '60s this was equivalent to about $1 million in today's dollars. But as the years progressed, inflation caused "bracket creep" so that less-wealthy households were getting hit by the high rates.
I would advocate returning the existing bracket rates to Clinton-era levels (except for the bottom three) and then adding on at least two more brackets on top: incomes above about $800k would be taxed at 45%, and incomes above $2 million at 50%. Then eliminate the overseas tax loopholes. Introduce an element of progressivity to the capital gains tax so that wealthy investors pay a higher marginal rate than middle class mutual fund owners. Legalize, tax and regulate marijuana to provide revenue for drug and alcohol treatment programs. I'm also open to the possibility of a carbon tax, as well as a luxury sales tax at the federal level.
If we combine this with an end to the Iraq war and streamlining of government contracts we should have plenty of revenue to work on health care and providing better assistance programs for low-wage workers and workers who need retraining. There are plenty of areas where government could get the same services for less if they didn't set up expensive Halliburton-style contracts.
http://www.taxfoundation.org/files/fede ... 901021.pdf
This gives a year-by-year history of the income tax brackets. Notice that in the 1960s and '70s the 70-percent bracket started at $200k. In the early '60s this was equivalent to about $1 million in today's dollars. But as the years progressed, inflation caused "bracket creep" so that less-wealthy households were getting hit by the high rates.
I would advocate returning the existing bracket rates to Clinton-era levels (except for the bottom three) and then adding on at least two more brackets on top: incomes above about $800k would be taxed at 45%, and incomes above $2 million at 50%. Then eliminate the overseas tax loopholes. Introduce an element of progressivity to the capital gains tax so that wealthy investors pay a higher marginal rate than middle class mutual fund owners. Legalize, tax and regulate marijuana to provide revenue for drug and alcohol treatment programs. I'm also open to the possibility of a carbon tax, as well as a luxury sales tax at the federal level.
If we combine this with an end to the Iraq war and streamlining of government contracts we should have plenty of revenue to work on health care and providing better assistance programs for low-wage workers and workers who need retraining. There are plenty of areas where government could get the same services for less if they didn't set up expensive Halliburton-style contracts.
Einstein's Law of Political Relativity - All ideological reference frames are relative.